Mitchell Cohen, President and Chief Executive Officer of Urbanfund Corp. (TSX
VENTURE:UFC) (the "Company"), confirmed today that the Company has filed
financial results for the year ended December 31, 2012 (the "Consolidated
Financial Statements").
For the year ended December 31, 2012 the Company reported earnings before income
taxes of $3,287,926 on revenue of $3,414,495 compared to earnings before income
taxes of $4,400,968 on revenue of $3,642,924 for the corresponding year in 2011.
The decrease in earnings was primarily related to a loss on the disposal of the
Richmond Property in August 2012.
Rental income decreased to $3,414,495 for the period ended December 31, 2012
from $3,642,924 for the corresponding period ended 2011. This was a result of
receiving only 10 months in revenue from the Richmond Property prior to its
sale. Although financing costs decreased, administrative costs for the year
ended December 31, 2012 was $623,519 as compared to $313,585 for the
corresponding period in 2011. This increase was directly related to payment of
the Company's share of on-site maintenance salaries at the Richmond Property,
which accumulated over a 2 year period and was required to be paid on closing of
the sale of the Richmond Property.
Loss on sale of $426,524 represents the Company's share of the closing costs
associated with the disposal of the Richmond Property. Of this amount, $330,169
represents a notional discharge fee of a mortgage which bore interest at 5.5%
and was due in 2016 (see Note 9 of the Consolidated Financial Statements).
Rental expenses for the year ended December 31, 2012 decreased to $1,218,799
compared with $1,333,962 for the corresponding period in 2011. The decrease was
attributed to the disposal of the Richmond Property in the third quarter of 2012
and a concentration on reducing general repairs and maintenance expenditures at
all properties.
Funds from operations ("FFO") for the years ended December 31, 2012 and 2011 are
as follows:
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Year Ended Year Ended
December 31, 2012 December 31, 2011
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Net Earnings (Loss) Before Income
Taxes $3,287,926 $4,400,968
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Adjust for:
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Interest Income ($28,038) ($45,802)
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Dividend Income ($34,611) ($53,481)
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Realized Gain on Marketable
Securities ($122,584) ($131,169)
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Unrealized Gain on Marketable
Securities ($240,925) ($18,071)
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Loss on Sale of Property $426,524 -
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Fair Value Adjustment on
Investment Property ($2,687,485) ($3,195,680)
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Funds From Operations (FFO) $600,807 $956,765
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For the year ended December 31, 2012, the Company reported a decrease in FFO to
$600,807 compared with $956,765 for the period ended December 31, 2011. This
decrease was caused primarily by increase in the unrealized gain on marketable
securities and the loss on sale of the Richmond Property.
FFO is a non-GAAP performance measure used by the Company to improve the
understanding of operating results for the investing public. FFO is not a
measure recognized under Canadian generally accepted accounting principles
("GAAP") and does not have a standardized meaning prescribed by GAAP. Therefore,
FFO may not be comparable to similar measures presented by other issuers.
However, the Company presents its FFO in accordance with the Real Property
Association of Canada (REALpac) White Paper on Funds from Operations published
on November 30, 2004 and revised in February, 2007.
FFO, or any other non-GAAP performance measure, is not intended to represent
operating profits for the period or from a property. Furthermore, it should not
be viewed as an alternative to net income, cash flow from operating activities
or similar measures of financial performance calculated in accordance with GAAP.
As of December 31, 2012, the Company had cash on hand in the amount of
$3,763,406 ($920,972 as at December 31, 2011), marketable securities of
$1,053,111 ($682,650 as at December 31, 2011) and short term investments in the
amount of $3,617,951 ($3,582,032 as at December 31, 2011).
As at December 31, 2012, the Company had mortgages payable in the amount of
$14,133,905 which was comprised of: (i) $8,220,956 representing a mortgage
payable for the Don Mills Property; and (ii) $5,912,949 representing a mortgage
payable for the Belleville Property and London Property.
The following selected financial data is derived from the unaudited quarterly
financial statements of the Company:
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Net Income
Net Income Per Share
Quarter ended Revenue (Loss) (Basic)(1)
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December 31, 2012 $779,940 $1,384,925 0.027
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September 31, 2012 $864,745 ($104,131) (0.010)
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June 30, 2012 $949,591 $1,124,373 0.030
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March 31, 2012 $820,219 $477,376 0.011
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December 31, 2011 $948,417 $90,986 0.002
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September, 30, 2011 $869,769 $197,470 0.005
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June 30, 2011 $924,632 $152,283 0.004
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March 31, 2011 $900,106 $3,271,235 0.075
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For comprehensive disclosure of the Company's performance for the period ended
December 31, 2012 and its financial position as at such date, reference should
be made to: (i) the Consolidated Financial Statements and the notes thereto; and
(ii) management's discussion and analysis of financial condition at, and results
of operations for the period ended December 31, 2012, which have been filed with
applicable securities regulators on SEDAR at www.sedar.com.
Urbanfund Corp. is a Toronto-based real estate development and operating
company. The Company's common shares trade under the symbol UFC on the TSX
Venture Exchange. Urbanfund's focus is to identify, evaluate and invest in real
estate or real estate related projects. The Company's assets are located in
Belleville, London and Toronto, Ontario and in Quebec City and Montreal, Quebec.
The Company's strategy going forward remains committed to seek accretive real
estate or real estate-related opportunities.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, which reflect
Management's expectations regarding the Company's growth, results of operations,
performance, business prospects and opportunities. Statements about the
Company's future plans and intentions, results, levels of activity, cash flow
from operations, performance, goals or achievements or other future events
constitute forward-looking statements. Wherever possible, words such as "may",
"will", "should", "could", "expect", "plan", "intend", "anticipate", "believe",
"estimate", "predict" or "potential" or the negative or other variations of
these words, or similar words or phrases, have been used to identify these
forward-looking statements. These statements reflect Management's current
beliefs and are based on information currently available to management as at the
date hereof.
Forward-looking statements involve significant risk, uncertainties and
assumptions. Many factors could cause actual results, performance or
achievements to differ materially from the results discussed or implied in the
forward-looking statements. These factors should be considered carefully and
readers should not place undue reliance on the forward-looking statements.
Although the forward-looking statements contained in this press release are
based upon what management believes to be reasonable assumptions, the Company
cannot assure readers that actual results will be consistent with these
forward-looking statements. These forward-looking statements are made as of the
date of this press release, and the Company assumes no obligation to update or
revise them to reflect new events or circumstances, except as required by law.
Many factors could cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements that may be expressed or implied by such forward-looking
statements, including: general economic and market segment conditions, interest
rates, costs outside of the Company's control
such as real estate taxes and utilities, the ability of tenants to satisfy their
contractual rent obligations and any unforeseen repair, maintenance or
replacement of the Company's assets. More detailed assessment of the risks that
could cause actual results to materially differ than current expectations is
contained in the "Risks and Uncertainties" section of the Company's Management's
Discussion and Analysis dated April 30, 2013.
FOR FURTHER INFORMATION PLEASE CONTACT:
Urbanfund Corp.
Mitchell Cohen
President & CEO
(416) 703-1877 x1025
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